Lionel Sujay Vailshery
Research expert covering cloud computing and emerging tech industries
Telecommunications industry in Indonesia - statistics & facts
With over 170 million mobile internet users across the country, Indonesia’s telecommunications market is among the largest in Southeast Asia. In 2023, the contributed over 880 trillion Indonesian rupiah to the national gross domestic product (GDP). The industry encompasses mobile and fixed broadband subscriptions and mobile phone services. As Indonesia becomes increasingly digitalized and seeks to meet its connectivity needs, the telecommunications market is expected to continue its rapid growth.
As more Indonesians acquire smartphones and demand affordable data prices, greater coverage, and improved service quality, these companies have worked to meet the changing needs. Instead of traditional calling and messaging plans, they have focused on offering data-oriented mobile services with attractive pricing plans and unlimited voice calls to differentiate themselves from competitors. This focus on data has resulted in being significantly lower than in neighboring countries.
To deliver a larger network capacity, the government has implemented the Palapa Ring project to enable an extensive network through undersea and land across the archipelago, including its most remote regions. Projections indicate that by 2030, 5G is expected to contribute over 41 billion U.S. dollars to Indonesia’s gross domestic product (GDP). Along with the growth of internet usage and smartphone adoption in Indonesia, this indicates a lucrative economic future.
Leading telecommunication operators in Indonesia
In recent years, the Indonesian telecommunications industry has undergone significant changes, reducing the number of market players. In 2022, Indosat Ooredoo and Hutchison 3 Indonesia merged to form Indosat Ooredoo Hutchison, making it the second-largest after Telkom. Following this, XL Axiata and Smartfren announced a merger in December 2024. These changes have reshaped the industry with three major players: Telkom, Indosat, and XL Axiata.As more Indonesians acquire smartphones and demand affordable data prices, greater coverage, and improved service quality, these companies have worked to meet the changing needs. Instead of traditional calling and messaging plans, they have focused on offering data-oriented mobile services with attractive pricing plans and unlimited voice calls to differentiate themselves from competitors. This focus on data has resulted in being significantly lower than in neighboring countries.
Telecommunications infrastructure in Indonesia
In the vast archipelago of Indonesia, the telecommunications infrastructure becomes a critical thread to connect diverse islands and regions with different geographical complexities. As cellular network providers recently phased out 3G technology, 4G has now become Indonesia's primary mobile and internet network. The country is also beginning to introduce 5G technology, promising and improved network coverage.Expanding connectivity: 5G development in Indonesia
5G services are only available in some cities in Indonesia, marking the initial stages of its development. Leading telecommunications companies like Telkom and Indosat Ooredoo Hutchison have made significant moves to embrace 5G adoption in Indonesia over the past years, indicated by the increasing number of 5G base transceiver stations (BTS). Nevertheless, issues with spectrum shortage and rising spectrum costs threaten future telecommunications development, particularly for 5G technology. Indonesia’s 5G network development tends to possess slower growth compared to its neighboring countries. As of 2023, although showcasing improved quality compared to 4G, Indonesia’s average 5G download speed stood the lowest among Singapore, Malaysia, Philippines, and Thailand, with Singapore's 5G download speed ranked the fastest.To deliver a larger network capacity, the government has implemented the Palapa Ring project to enable an extensive network through undersea and land across the archipelago, including its most remote regions. Projections indicate that by 2030, 5G is expected to contribute over 41 billion U.S. dollars to Indonesia’s gross domestic product (GDP). Along with the growth of internet usage and smartphone adoption in Indonesia, this indicates a lucrative economic future.
